Sign in
TS

TIC Solutions, Inc. (TIC)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 revenue was $473.9M, up 56% YoY on a combined basis, with Adjusted EBITDA of $77.3M and GAAP EPS of $(0.08); TIC reaffirmed FY25 revenue of $1.53–$1.565B and Adjusted EBITDA of $240–$250M .
  • Results reflected two months of NV5 contribution post-close (Aug 4) and early integration progress; cost synergy target raised from $20M to $25M, expected at full run-rate by mid-2027 .
  • Mix was helped by higher-margin consulting engineering and geospatial; inspection and mitigation faced softer chemicals and LNG project timing headwinds, partly offset by run-and-maintain and call-out strength .
  • Balance sheet strengthened with an October $250M PIPE at $12; liquidity was $282.9M (cash $164.4M, revolver availability ~$118.5M) as of 9/30/25; term loans ~$1.6B .

What Went Well and What Went Wrong

What Went Well

  • Diversification and integration momentum: “Our third quarter results demonstrate the strength of our platform... combining the legacy Acuren and NV5 businesses... We have increased our identified cost synergy target from $20 to $25 million.” .
  • Margin mix: Adjusted gross margin expanded to 36.1% versus ~29.6% in the combined prior-year period, reflecting contribution from NV5’s higher-margin services .
  • Data center and secular tailwinds: “Data center work for our hyperscaler clients more than doubled over the TTM... infrastructure buildout, grid modernization and energy transition are multi-year growth drivers.” .

What Went Wrong

  • Chemicals end-market softness and LNG timing weighed on inspection and mitigation; segment revenue down ~3% YoY despite run-and-maintain resilience .
  • Adjusted EBITDA margin of 16.3% was slightly below the 16.9% combined prior-year comp as integration and higher SG&A mix from NV5 weighed on the quarter .
  • Federal shutdown created limited, non-material delays in Q4 purchase orders/work orders (government exposure ~20% total, <10% federal), adding some near-term execution friction .

Financial Results

Quarterly P&L and Margins (oldest → newest)

MetricQ1 2025Q2 2025Q3 2025
Revenue ($M)$234.2 $313.9 $473.9
GAAP Diluted EPS$(0.21) $(0.00) $(0.08)
Adjusted EBITDA ($M)$25.9 $54.6 $77.3
Adjusted EBITDA Margin11.0% 17.4% 16.3%
Adjusted Gross Margin25.2% 28.8% 36.1%

Beat/Miss vs S&P Global Consensus (Primary EPS, Revenue)

Note: S&P “Primary EPS” may differ from GAAP EPS. Asterisks indicate S&P Global values.

MetricQ1 2025Q2 2025Q3 2025
Revenue actual ($M)$234.2 $313.9 $473.9
Revenue cons. ($M)$223.6*$308.4*$468.7*
Surprise+$10.6M (beat)*+$5.5M (beat)*+$5.2M (beat)*
Primary EPS actual$(0.165)*$0.042*$(0.001)*
Primary EPS cons.$0.004*$0.106*$0.089*
Surprisemiss*miss*miss*

Values retrieved from S&P Global.

Segment Revenue (Q3 2025)

  • Reported contribution (NV5 included for ~2 months post-close):

    • Inspection & Mitigation: ≈$293M
    • Consulting Engineering: ≈$122M (2-month stub)
    • Geospatial: ≈$62M (2-month stub)

  • Pro forma (CFO commentary for full-quarter view):

    • Consulting Engineering: ≈$189M (≈+11% YoY)
    • Geospatial: ≈$90M (≈+4% YoY)

KPIs and Balance Sheet (as of 9/30/25 unless noted)

  • Liquidity $282.9M (cash $164.4M; revolver availability ~$118.5M) .
  • Term loan debt ~$1.6B .
  • October 2025 equity raise: $250M at $12.00/share to existing holder .
  • YTD operating cash flow $45.3M; capex $21.2M (≈2.1% of revenue) .
  • Adjusted EBITDA reconciliation includes $23.9M acquisition/integration, $1.5M transformation, $6.3M stock comp, partially offset by $(1.6)M other items in Q3 .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2025Company indicated updated combined guidance would come with Q3 results (no prior numeric range) $1,530–$1,565M Initiated detailed range
Adjusted EBITDAFY 2025Not previously given post-NV5 closing $240–$250M Initiated detailed range
Cost SynergiesPost-close$20M run-rate target (initial) $25M run-rate by mid-2027 Raised
2026 Outlook (color)FY 2026N/ARevenue +3%–5% vs 2025 combined baseline; Adj. EBITDA margin 15.5%–16.5% New preliminary framework
Tax rate, OpEx, OI&E, segment guidance, dividendsFY 2025Not providedNot provided—

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 2025, Q2 2025)Current Period (Q3 2025)Trend
AI/Data CentersNot highlighted in Q1; Q2 focused on NV5 merger and platform expansion Data center revenue >100% YoY, still ~3% mix; layering services to grow rev/MW Positive acceleration
Integration/SynergiesQ2: NV5 closed Aug 4; guidance to be refreshed with Q3 Synergy target raised to $25M; execution phase starting; milestones set Improving
Chemicals end-marketNot emphasized in Q1; modest organic growth Q2 Softness continues; cautious into Q4/2026; potential bounce-back given essential nature of work Near-term headwind
LNG project timingNot cited in Q1/Q2Gaps between project cycles affected I&M in Q3 Transitory headwind
Government funding/shutdownNot citedLimited non-material impact; minimal federal exposure (<10%) Stabilizing
Cash flow/LeverageQ1: solid FCF, balance sheet progress $105M cash interest building block, cash taxes $20–$30M, capex ~3% rev; PIPE strengthens flexibility Execution focus
Segment disclosureN/ANew 3-segment reporting introduced Transparency improves

Management Commentary

  • CEO (Tal Pizzey): “Our third quarter results demonstrate the strength of our platform... The addition of NV5 services... provided meaningful diversification... We have increased our identified cost synergy target from $20 to $25 million.”
  • Executive Chairman (Robert A.E. Franklin): “The underlying fundamentals of our recurring and reoccurring inspection and engineering services remain strong... We are executing our integration plan with discipline... well positioned to deliver sustainable value creation for shareholders.”
  • CFO (Kristin Schultes): New segment reporting, I&M ≈$293M, strong margins in consulting engineering/geospatial (51.4%/48.4%), initial synergy realization expected late Q4 into 2026 .

Additional corporate update: General Counsel retirement by year-end; search underway .

Q&A Highlights

  • Free cash flow building blocks: cash interest ≈$105M; cash taxes ~$20–$30M; capex ≈3% of revenue; working capital the swing factor .
  • Data center strategy: revenue up >100% YoY but small share (~3%); combining Acuren on-site services with NV5 commissioning and power delivery to expand rev/MW and geography .
  • I&M outlook: Q3 softness driven by LNG timing and chemicals; outage work less “spiky” for TIC; expect eventual chemicals bounce-back given essential nature of inspections .
  • Government exposure/shutdown: ~20% total government, <10% federal; non-material delays in Q4 to date .
  • Synergies and M&A: cost-only synergy target raised to $25M; pipeline of bolt-on deals (4–6x multiples); nine closed YTD, two in Q3, more expected in Q4 .

Estimates Context

  • Q3 revenue beat by ~$5.2M vs S&P ($473.9M actual vs $468.7M cons.); Primary EPS missed (actual ≈$(0.001) vs $0.089 cons.), reflecting transaction/integration costs and higher D&A from acquisitions. Q2 also showed a small revenue beat and an EPS miss; Q1 revenue beat and EPS miss as public company costs ramped . Values retrieved from S&P Global.*
  • FY25 consensus sits near the reaffirmed outlook (Rev ≈$1.542B; EBITDA ≈$242.6M), implying limited changes to Street numbers post-print; FY25 normalized EPS near breakeven [GetEstimates]. Values retrieved from S&P Global.*

Values retrieved from S&P Global.

Key Takeaways for Investors

  • Integration is tracking well with synergy target raised to $25M; initial cost synergy realization expected late Q4–2026—monitor cadence and margin capture in 2026 (target 15.5%–16.5% Adj. EBITDA margin) .
  • Mix shift to higher-margin consulting engineering/geospatial supported adjusted gross margin expansion to 36.1%; sustaining this mix is key for margin resilience in 2026 .
  • I&M near-term demand is choppy (chemicals soft; LNG timing); run-and-maintain and call-out work provide a floor, but pace of chemicals recovery is a watch item .
  • Data center growth is a credible optionality lever (TTM >100% growth from a small base); cross-selling and expanded service stack can compound growth per MW, potentially accelerating in 2026 .
  • Balance sheet flexibility improved with $250M PIPE; focus remains deleveraging below 3x over time via FCF; watch cash interest (~$105M), taxes ($20–$30M), capex (~3% rev) to gauge FCF conversion .
  • Near-term setup: reaffirmed FY25 guide, limited net federal shutdown impact, and segment disclosures enhance transparency—catalysts include synergy milestones, chemicals end-market stabilization, and M&A execution .
Document sources:
- Q3 2025 8-K/Press Release and financial tables: **[2032966_0001628280-25-051293_ticsolutions-x3q25earnings.htm:0]** **[2032966_0001628280-25-051293_ticsolutions-x3q25earnings.htm:7]** **[2032966_0001628280-25-051293_ticsolutions-x3q25earnings.htm:10]** **[2032966_0001628280-25-051293_ticsolutions-x3q25earnings.htm:11]** **[2032966_0001628280-25-051293_ticsolutions-x3q25earnings.htm:1]**
- Standalone press release: **[2032966_42184b2454de4b058a668e804986821d_0]** **[2032966_42184b2454de4b058a668e804986821d_1]** **[2032966_42184b2454de4b058a668e804986821d_2]**
- Q2 2025 8-K/Press Release: **[2032966_0002032966-25-000025_acurencorporation-x2q25ear.htm:1]** **[2032966_0002032966-25-000025_acurencorporation-x2q25ear.htm:6]** **[2032966_0002032966-25-000025_acurencorporation-x2q25ear.htm:7]** **[2032966_0002032966-25-000025_acurencorporation-x2q25ear.htm:8]** **[2032966_0002032966-25-000025_acurencorporation-x2q25ear.htm:2]**
- Q1 2025 8-K/Press Release: **[2032966_0002032966-25-000017_acurencorporation-x1q25ear.htm:0]** **[2032966_0002032966-25-000017_acurencorporation-x1q25ear.htm:1]** **[2032966_0002032966-25-000017_acurencorporation-x1q25ear.htm:5]** **[2032966_0002032966-25-000017_acurencorporation-x1q25ear.htm:6]** **[2032966_0002032966-25-000017_acurencorporation-x1q25ear.htm:7]**
- Q3 2025 Earnings Call Transcript (prepared remarks and Q&A): **[0002032966_2265991_1]** **[0002032966_2265991_3]** **[0002032966_2265991_4]** **[0002032966_2265991_6]** **[0002032966_2265991_7]** **[0002032966_2265991_9]** **[0002032966_2265991_10]** **[0002032966_2265991_11]**

S&P Global estimates:
- Quarterly consensus and actuals (Primary EPS, Revenue, EBITDA): GetEstimates tool (values marked with *)
- Annual consensus FY24–FY25: GetEstimates tool (values marked with *)
Values retrieved from S&P Global.